Washington, DC, May 15, 2013 -- Home builder confidence improved three points to a 44 reading on the National Association of Home Builders/Wells Fargo Housing Market Index for May.
However, readings below 50 indicate that more builders view conditions as poor rather than good.
The reading reflected improvement in all three index components – current sales conditions, sales expectations and traffic of prospective buyers.
“Builders are noting an increased sense of urgency among potential buyers as a result of thinning inventories of homes for sale, continuing affordable mortgage rates and strengthening local economies,” noted National Association of Home Builders Chairman Rick Judson.
“While industry supply chains will take time to re-establish themselves following recession-related cutbacks, builders’ views of current sales conditions have improved and expectations for the future remain quite strong as consumers head back to the market in force,” said NAHB Chief Economist David Crowe.